Medicaid expansion

The Affordable Care Act established an expansion of Medicaid eligibility levels. In 2014 states can cover low-income adults between 19 and 64 and increase the eligibility level to 133% of the federal poverty level. All of the cost of covering the newly eligible Medicaid recipients will be covered by the federal government from 2014 to 2016, with the federal payment rate decreasing over subsequent years. The following table shows the percent of the reimbursement for newly eligible Medicaid recipients that will be covered by the federal government. (Arkansas's FY2013 base rate is 70.17%.)

2014

100%

2015

100%

2016

100%

2017

95%

2018

94%

2019

93%

2020

90%

Additionally Medicaid reimbursement to primary care physicians will increase, with the increase in costs covered at 100% by the federal government.

In June 2012, the U.S. Supreme Court upheld the constitutionality of the Medicaid expansion, but said the expansion must be offered to states as an option, not a mandate.

Arkansas's implementation

During the 2013 legislative session, the Arkansas General Assembly passed Acts 1497 and 1498, twin measures known as the Health Care Independence Act. These measures established the state's intention to apply for a federal waiver that would allow the state to use Medicaid funding to pay for private health insurance for individuals with household incomes up to 138% of the federal poverty level. The state submitted the waiver application in August 2013, and the federal government approved the plan the following September.